[Andrew9901]

My client is an S corp. The S corp paid about 8K in start up capital to invest in a new business venture. How is this recorded on the S corp balance sheet? What type of asset is this?

[NYCCPA]

Is the new business an activity that is part of the existing S Corp, or is it an $8k investment in an outside entity? If the latter, Investment in Company X. Other Asset.

[overstreetracer]

On the balance sheet, the $8K invested in a new venture would typically be recorded as an asset under "Investment in [Name of the New Venture]." Since it's an outlay for future benefits, it's categorized as an investment. I'm not super versed in S corp specifics, but a friend who runs a Denver Airport to Copper Mountain transport service as an S corp mentioned that initial investments like these are tracked meticulously for their impact on shareholder basis and tax implications.